Ringgit opens weaker against US dollar

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Kuala Lumpur
– The ringgit depreciated against the US dollar in early trade today on a lack of buying momentum, said a dealer.

At 9am, the ringgit stood at 3.9625/9655 against the greenback from yesterday’s close 3.9520/9560.

Oanda Corp Head of Trading for Asia Pacific, Stephen Innes, said the ringgit would pause for thought as the broader US dollar sell-off abated on the back of higher US yields and hawkish Federal Reserve rhetoric on an interest rate hike.

He added that the ringgit could enter a period of consolidation while awaiting the next domestic catalyst.

“There were some jitters in the ringgit bond markets yesterday.After attempting to rally at yesterday’s opening, the moves were met with a wave of selling, which carried on throughout yesterday’’s session, suggesting the market was looking to trim risk,” he said in a note today.

In the absence of any local bond demand, the market could see the US dollar/ringgit edging higher compounded by higher US yields and a moderately stronger greenback, said Innes.

Meanwhile, the ringgit traded mixed against a basket of major currencies.

It strengthened against the euro to 4.8303/8351 from yesterday’s 4.8388/8441 and appreciated against the yen to 3.5596/5629 from 3.5674/5720.

The ringgit eased against the British pound to 5.4754/4811 from 5.4506/4577 and declined against the Singapore dollar to 2.9888/9917 from 2.9867/9906. -Bernama